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MISC 95: Email to the Chairman of the Committee from a contributor who wishes to remain anonymous:
Stanford International Bank
I am writing to you in your capacity as chair of the Parliamentary Foreign Affairs Select Committee. I am a British citizen and one of the unfortunate depositors at Stanford International Bank in Antigua. Allen Stanford has been accused by the US Securities and Exchange Commission of running a massive Ponzi scheme. There are three issues which I would like to draw to the attention of the foreign affairs select committee:
1) There is an agreement between the British and Antiguan governments for ‘the promotion and protection of investments’ between the two countries which has not yet been admitted by the British government. It includes protocol for the treatment of British investors in the event of a liquidation of an Antiguan business (Stanford’s bank is in liquidation). The BBC have stated approximately 200 representing approximately USD 80 million in their Panorama programme - see below.
2) BBC’s Panorama programme entitled the ‘Six Billion Dollar Man’ alleges that the UK government knew of Allen Stanford’s financial history and had revoked a previous banking license in Montserrat. Further, the BBC programme alleges that both the UK and US governments knew of money-laundering operations going back to 1990. Despite this, neither the Financial Services Authority nor the Foreign and Commonwealth Office gave any warning to British citizens. Quite the opposite, in 2001 HM Treasury gave a press release announcing the lifting of the previous financial advisory against Antigua and Barbuda.
3) The correspondent bank for SIB accounts held in Sterling and Euros was HSBC London. Such a prestigious and large bank gave a façade to the operations of SIB throughout the European Union which was false (further correspondent banks have a role of due diligence vis-à-vis offshore operations according to the 2007 Money Laundering regulations - something that I am writing to HMT about).
In our personal case, we were ex-patriated workers who had no access to British pension schemes or any banking products except for basic bank accounts. The offshore route was the only one open. There were no warnings from the British authorities about SIB. All of our savings were transferred from our British and European bank accounts to HSBC. Our savings have now been lost: unnecessarily it seems.
We are not a wealthy family with millions to lose. We are middle class who had tried to save responsibly to protect our family and our future. SIB was recommended to us as a very conservative investment by independent financial advisors operating from Belgium (we have also written to their financial regulatory agency). Since depositing funds with SIB, we have moved to the US and are now resident. We have also sent a number of letters to the regulatory authorities in the US.
Given the BBC allegations that the British authorities knew of financial misdoings of Allen Stanford, I would like to know why no investor warnings were issued both to British and EU investors. I would also like to know how it was possible for HSBC to have become the correspondent bank for all Sterling and Euro deposits given the exercise of due diligence expected from correspondent banking with offshore entities. I was glad to see the Foreign and Commonwealth Office comments to the BBC that the ‘UK government does take financial malpractice very seriously’.
I hope therefore that you will offer your support to the victims and do everything possible to see the savings and retirement funds of British citizens restored. There is compelling evidence that Allen Stanford should have been removed from the financial sector decades ago and that the UK and US governments both had the power and opportunity to protect their citizens and all depositors from his banking (mal)practice.
Given the agreement that exists between the British and Antiguan governments concerning the promotion and protection of investments, I would like to know what action the British government will be taking on our behalf. I hope you can help us in securing a course of action from the British government.
18 May 2009
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